Pursuant to the information on the Australia Taxation Office’s website, individuals who are financially affected by COVID-19 can access some of their superannuation early. Those individuals will not need to pay tax on any amount released to them and will not need to disclose it when lodging their tax returns. Eligible parties can apply to access up to $10,000 of their superannuation until 30 June 2020 and a further $10,000 from 1 July 2020 until 24 September 2020. It is important to understand how any early access to superannuation affects the matrimonial pool. Given that superannuation is part of the marital assets, regardless of whose name the superannuation is held, the parties (a spouse or a defacto partner) are entitled to that superannuation as part of the matrimonial property split. If one party accessed their superannuation early, the other party can argue that a partial property settlement has been distributed to the party who accessed their superannuation early for their sole benefit.
For further information, please contact Michael Harris on 9557 2915 or by email [email protected]